IndianOil planning new 798-km crude pipeline

Vol 19, PW 14 (24 Mar 16) Midstream & Downstream

IndianOil is preparing to issue pipeline laying tenders for a new 798-km cross-country crude pipeline running parallel to its established 1870-km pipeline from Salaya on the Gujarat coast to Mathura in Uttar Pradesh.

On February 24, IndianOil received crucial environmental clearance, paving the way for this estimated Rs1584cr ($237m) capacity expansion designed to increase oil supplies to IOC's three landlocked refineries at Koyali in Gujarat, Mathura in Uttar Pradesh and Panipat in Haryana with a combined 36.7m t/y capacity. Starting at Moda in Gujarat the pipeline will run to Manpuria in Rajasthan and on to Rewari in Haryana, increasing present pipeline throughput from 21m t/y to 25m t/y.

IndianOil reckons the new pipeline will make possible more 'opportunity crude' or spot imports from Venezuela and Mexico over expensive gulf crude helping the three refineries improve Gross Refining Margins. A 287-km stretch will run through Gujarat with 498-km in Rajasthan and 13-km in Haryana.

Of the total 798-km, a 740-km stretch will have a 28-inch diameter while the rest will have a 24-inch diameter. This pipeline will pass through Gujarat districts Jamnagar, Rajkot, Surendranagar, Ahmedabad, Mehsana, Patan and Banaskantha before touching Rajasthan at Amirgadh from where it will snake through Sirohi, Pali, Ajmer, Tonk, Jaipur and Dausa districts before hooking up to the Chaksu to Mathura section of the pipeline with a branch running to Rewari.